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Please show your work so i can see how you go the answer. Cardinal Company is considering a project that would require a $2, 815,000
Please show your work so i can see how you go the answer.
Cardinal Company is considering a project that would require a $2, 815,000 investment in equipment with a useful life of five years. At the end of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. The company's discount rate is 16% The project would provide net operating Income each year as follows: Required: 1. Which item(s) in the income statement shown above will not affect cash flows? salaries Variable expenses Advertising salaries, and other fixed out-of-pocket costs expenses Depreciation expense 2. What are the projects annual net cash inflows? 3 What is the present value of the project's annual net cash inflows? 4. What is the present value of the equipments salvage value at the end of five yearsStep by Step Solution
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